Former AMP financial adviser charged with dishonest conduct

Former Perth-based financial adviser David Michael Fong and his company Fong Financial Planners face serious consequences if found guilty of dishonest conduct.

In a notice issued on Monday (22 November), ASIC alleges that in 2014, while an authorised representative of AMP, Mr Fong via Fong Financial Planners acted dishonestly when he completed and submitted false information in clients’ insurance applications; failed to adequately disclose fees to clients; acted without client instructions; and failed to adequately disclose the effect of advice, for instance clients becoming uninsured after closing their superannuation accounts.

Mr Fong appeared before the Perth Magistrates Court on 19 November 2021 and was granted conditional bail.

If found guilty, Mr Fong faces a maximum penalty of 10 years’ imprisonment, a fine of either $765,000 or three times the total value of the benefits reasonably attributable to the offence, or both. His company stands to lose $7,650,000 or three times the total value of the benefits reasonably attributable to the offence, or 10 per cent of turnover in the 12-month period ending at the end of the month in which the offence was committed.

Mr Fong was previously banned from providing financial services or engaging in credit activities, permanently. He later appealed ASIC’s decision to the Administrative Appeals Tribunal, but the appeal process has been stayed pending the outcome of the criminal proceedings.